Describing Model Relations: The Case of the Capital Asset Pricing Model (CAPM) Family in Financial EconomicsVergara-Fernández, M., Heilmann, C., & Szymanowska, M. (2023). Describing model relations: The case of the capital asset pricing model (CAPM) family in financial economics. Studies in History and Philosophy of Science, 97, 91–100. https://go.openathens.net/redirector/nu.edu?url=https%3A%2F%2Fwww.sciencedirect.com%2Fscience%2Farticle%2Fpii%2FS0039368122001790
Students should read "Describing model relations: The case of the capital asset pricing model (CAPM) family in financial economics" by Vergara-Fernández, Heilmann, and Szymanowska in Studies in History and Philosophy of Science because it provides valuable insights into the evolution and variations of the Capital Asset Pricing Model (CAPM). Understanding the CAPM and its variants is essential for students studying finance as it forms the foundation for asset pricing and portfolio management theories. This article explores the complexities and nuances of different CAPM models, shedding light on their historical development, theoretical underpinnings, and practical implications. By reading this article, students can deepen their understanding of the CAPM and its applications, gaining critical insights into modern finance theory and its historical context. Additionally, it encourages students to think critically about the assumptions and limitations of the CAPM and its relevance in contemporary financial practice.